Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Friday was one monster plunge, and a long TGIF party led to lots of
sideways lunchtime drift, starting early, and continuing pretty much
to EOD.

Not much happened. Not much to say about it!

Let's see what Monday brings.

The market has plunged over a very significant precipice and is teetering.
A Red Flag warning remains in effect.

CAVEAT
Guard your funds. Although a dangerous time for beginning traders to
get wet, this is an excellent time for paper trading and practice.

E-mini
Friday Jan 09, 2009

1 = Friday opens with a monster reversal off the Close (10-Minute, bottom left chart). We rarely take an
Anomaly entry off the Close. This time the Signal completes outside the "green fog" so we re-consider the
surroundings. Price Window to the (always considered proven) Pivot is untradable.

A = On the other hand! The breakout candle is a large red candle, crossing below the MA, and penetrating
well through the Pivot. Entry below the Pivot, with initial stop above.

B = DVS (pink arrow) blasts a giant red candle through the Mid, just barely penetrating the S1. Per PMT
stop rules, move the profit-locking stop above the Mid.

C = The DVS (= B), clearly releasing rather than exhausting Momentum, generates another giant red candle.
Our position is in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop to
Giveback level.

If you are on the sidelines, this is a 2-candle 123 continuation, one of our "S" signals; otherwise, add
contracts (below the S1, in the last minutes of the candle).

D = Large red candle through the Low. Per our stop rules, move the profit-locking stop above the Low.

Oops!

* Price Action stabs through the S2 and retracts.

* Price Action recoups 2 points of profit.

* Lower-Low-Turns-White.

Surely you bailed out somewhere in there!!! +/- 12.50 points

2 = The white Bull Dragonfly is too wispy to enter, but the next candle makes it a Doji Spike Sandwich, and
that is much more inviting. Volume, however, is clearly diminishing, as are the odds on this entry, which
never does prove.

3 = Healthy white Bull Dragonfly off the S2. This could be it!

Nope. First a nasty Doji stall, and then the death of Bull Volume (pink arrow). Looks like lunchtime
sideways drift started early as the BBs rush out to drink a very long TGIF lunch.

4 = Failed reversal attempt (blue arrow) off the S1 repeats with a red Bear Dragonfly 123 kickoff (orange
arrow). It fails to take off as well.

5 = The Failed TTT makes this a Multiple top off the S1. With high-likelihood Failed TTT Corollary attempt
at the S2 set up, we are pulled in below the MA, with initial stop advancing above the high of the candle.

NOTE: The next two candles made for a scary stall and you may have exited.
Personal strategic preference is to jump a mental stop to "free trade"
plus a tik, and wait.

E = Waited? Then the prolonged stall has you are anxious so you won't mind calling this a "large" red candle,
providing an excuse to move the profit-locking stop above the high of the candle.

F = Entering EOD Hiccup Danger Time Zone. The instant tap and recoil at the S2 screamed, "Pivot Scalp Exit!!!"
I hope that at least by the time Price Action recouped >2 points everybody has jumped ship. +/- 5 points

EOD Hiccup Price Action tapes a classic V Checkmark shaped trajectory (plum line), closing way down at the S3.

PERSPECTIVE
(Daily, bottom right chart)

Sideways trading continues, safely inside the LT SW Channel (lavender lines).
Suspect a return to the "Hover-Dive" (or the Bull opposite) pattern that
allows the BBs to scalp with limited exposure. Of course, knowing where the
Pivot Points are, we can too!

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Friday's PMT Chart: